8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 28, 2006

TANGER FACTORY OUTLET CENTERS, INC.

_________________________________________

(Exact name of registrant as specified in its charter)

North Carolina (State or other jurisdiction of Incorporation)   1-11986 (Commission File Number)            56-1815473          (I.R.S. Employer Identification Number)

             3200 Northline Avenue, Greensboro, North Carolina 27408             

(Address of principal executive offices) (Zip Code)

                           (336) 292-3010                                

(Registrants’ telephone number, including area code)

                           N/A                                

(former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02Results of Operations and Financial Condition

On February 28, 2006, Tanger Factory Outlet Centers, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition as of and for the quarter ended December 31, 2005. A copy of the Company’s press release is furnished as Exhibit 99.1 to this report on Form 8-K. The information contained in this report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.

Item 7.01Regulation FD Disclosure

On February 28, 2005, the Company made publicly available certain supplemental operating and financial information for the quarter ended December 31, 2005. This supplemental operating and financial information is attached to this current report as exhibit 99.2. The information contained in this report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.

Item 9.01Financial Statements and Exhibits

(c) Exhibits

The following exhibits are included with this Report:

Exhibit 99.1Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended December 31, 2005.

Exhibit 99.2 Supplemental operating and financial information of the Company as of and for the quarter ended December 31, 2005.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 28, 2006

TANGER FACTORY OUTLET CENTERS, INC.

By: /s/Frank C. Marchisello, Jr.                 

Frank C. Marchisello, Jr.

Executive Vice President, Chief Financial Officer

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__________________________________________________________________________             

EXHIBIT INDEX

Exhibit No.

99.1   Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended December 31, 2005.

    99.2  Supplemental operating and financial information of the Company as of and for the quarter ended December 31, 2005.

EX-99.1

Tanger Factory Outlet Centers, Inc.

News Release

For Release:IMMEDIATE RELEASE

Contact:Frank C. Marchisello, Jr.

                      (336) 834-6834

TANGER REPORTS YEAR END RESULTS FOR 2005

Capital Transactions and Charter Oak Partner Buy-Out Highlight Solid Operating Results

Greensboro, NC, February 28, 2006, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations available to common shareholders (“FFO”), a widely accepted supplemental measure of REIT performance, for the year ended December 31, 2005, was $60.0 million, or $1.73 per share, as compared to FFO of $63.0 million, or $1.89 per share, for the year ended December 31, 2004. For the three months ended December 31, 2005, FFO was $12.5 million, or $0.34 per share, as compared to FFO of $17.7 million, or $0.53 per share, for the three months ended December 31, 2004.

FFO for the three months and year ended December 31, 2005 was impacted by a previously announced non-recurring charge for the early extinguishment of mortgage debt of approximately $9.9 million which has been included in interest expense. Excluding the non-recurring charge, FFO for the fourth quarter and year ended December 31, 2005 would have been $0.61 and $2.01 per share respectively, representing an increase of 15.1% for the three months ended December 31, 2005 and an increase of 6.3% for the year ended December 31, 2005.

Tanger’s FFO for the three months and year ended December 31, 2005 include $1.4 million and $1.6 million in gains on the sale of land parcels, respectively, which are included in other income. Excluding the land parcel gains, FFO for the three months and year ended December 31, 2005 would have been $0.30 and $1.69 respectively.

Net income available to common shareholders for the year ended December 31, 2005 was $4.6 million or $0.16 per share, as compared to net income available to common shareholders of $7.0 million, or $0.26 per share for 2004. For the three months ended December 31, 2005, the company reported a net loss available to common shareholders of $0.4 million, or $0.01 per share, compared to net income of $4.3 million, or $0.16 per share for the fourth quarter of 2004. Net income available to common shareholders for the three months and year ended December 31, 2005 was also impacted by the non-recurring charge described. Excluding the non-recurring charge, net income available to common shareholders for the fourth quarter and year ended December 31, 2005 would have been $0.31 and $0.50 per share respectively, representing an increase of 93.8% for the three months ended December 31, 2005 and an increase of 92.3% for the year ended December 31, 2005.

Net income and FFO per share amounts above are on a diluted basis. FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.

Highlights of 2005 Achievements

·   Earned an investment grade rating from Moody’s and Standard and Poor’s on the outstanding senior unsecured debt

·   Completed direct placement of 3,000,000 common shares

·   Issued $250,000,000 of 6.15% Senior Unsecured 10 Year Notes

·   Issued 2,200,000 7.5% Class C Preferred Shares at $25.00 per share

·   Closed on the $282.5 million acquisition of the remaining 2/3 interest in the Charter Oak portfolio

·   Began construction on new developmentprojects in Charleston, South Carolina and Wisconsin Dells, Wisconsin

·   Opened a 46,400 square foot expansion in Locust Grove, Georgia

·   Opened a 21,300 square foot expansion in Foley, Alabama

·   3.8% increase in same center net operating income

·   Renewed over 1.5 million square feet, or 84% of the square feet scheduled to expire during 2005 with the existing tenants at an average increase in base rental rates of 6.0%

·   97% period-end portfolio occupancy rate as of December 31, 2005

·   Comparative sales increased 3.4% to $320 per square foot in reported same-space tenant sales for the rolling twelve months ended December 31, 2005

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, “Our operating measures continue to be strong as our tenants’ sales increased 3.4% to $320 per square foot and same center net operating income also increased 3.8% for the calendar year 2005. Our management team is energized as we begin a new year and look forward to what should be a very successful 2006.”

National Platform Continues to Drive Operating Results and Tenant Sales

Tanger’s broad geographic representation and established brand name within the factory outlet industry continues to generate solid operating results. The company’s portfolio of properties had a year-end occupancy rate of 97%, representing the 25th consecutive year since the company commenced operations in 1981 that it has achieved a year-end portfolio occupancy rate at or above 95%.

During 2005, Tanger executed 460 leases, totaling 1,944,000 square feet. For the year, 1,525,000 square feet of renewals generated a 6.0% increase in average base rental rates, and represented 84% of the 1,812,000 square feet originally scheduled to expire during 2005. Base rental increases on re-tenanted space during the year averaged 7.1% on a cash basis and accounted for the remaining 419,000 square feet. This compares to 2004, when 1,571,000 square feet of renewals generated a 5.6% increase in average base rental rates, and represented approximately 88% of the 1,790,000 square feet originally scheduled to expire during 2004.

Tanger continues to derive its rental income from a diverse group of national brand name manufacturers and retailers with no single tenant accounting for more than 6.9% of its gross leasable area and 6.2% of its total base and percentage rentals. Same center net operating income increased 3.8% for the year ended December 31, 2005 compared to the same period in 2004.

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Reported same-space tenant sales per square foot for the rolling twelve months ended December 31, 2005 were $320 per square foot. This represents a 3.4% increase compared to the rolling twelve months ended December 31, 2004. For the fourth quarter of 2005, same-space sales increased by 6.2% as compared to the same period in 2004. Same-space sales is defined as the weighted average sales per square foot reported in space open for the full duration of the comparative periods. Reported same-store sales increased 3.9% for the three months ended December 31, 2005 resulting in an increase of 1.2% for the year ended December 31, 2005. Same-store sales are defined as sales for tenants whose stores have been open from January 1, 2004 through the duration of the comparison period.

Tanger’s average tenant occupancy cost as a percentage of average sales was 7.5% for 2005 compared to 7.3% in 2004. The increase in average occupancy costs was a result of a 5.7% increase in average total occupancy costs per square foot offset by a 3.4% average increase in tenants’ sales per square foot. Based on these statistics and other factors, Tanger continues to see upside potential in increasing rental rates in 2006.

Successful Investment Activities Fund Acquisition and Strengthen Balance Sheet

On November 23, 2005, Tanger announced that it had closed on the $282.5 million acquisition of the remaining two thirds interests in the Charter Oak portfolio owned by an affiliate of Blackstone Real Estate Advisors. The Charter Oak portfolio, comprised of nine factory outlet centers (approximately 3.3 million square feet), was acquired in December 2003 by a joint venture company, owned one third by Tanger and two thirds by Blackstone. Since then, Tanger has provided operating, management, leasing and marketing services for the properties. As a result of this transaction, the total amount of wholly-owned square footage in Tanger’s real estate portfolio has increased by 66%, from 5.0 to 8.3 million square feet.

In December 2004, the company sold 9.37 acres of land adjacent to its center located in North Branch, Minnesota for net proceeds of $1.6 million, generating a gain on sale of the land parcel of $1.4 million.

Construction of a 46,400 square foot expansion was completed at Tanger’s center located in Locust Grove, Georgia. The majority of stores opened during the third quarter with the remaining stores commencing operations during the fourth quarter of 2005. Tenants in the expansion include Polo/Ralph Lauren, Skechers, Children's Place and others. Including the expansion, the company’s Locust Grove center now totals approximately 294,000 square feet.

The company has also completed a 21,300 square foot expansion at its center located in Foley, Alabama. The majority of stores commenced operations during the fourth quarter of 2005. Tenants in the expansion include Ann Taylor, Skechers, Tommy Hilfiger and others. Including the expansion, the company’s Foley center totals approximately 557,000 square feet.

The company’s minimum internal 50% pre-leasing requirement has been met on its Charleston, South Carolina project and the Wisconsin Dells, Wisconsin project. Both projects are under construction and are expected to open in the fourth quarter of 2006. Tanger continues the pre-development and leasing of two additional previously announced sites located in Pittsburgh, Pennsylvania and Deer Park, New York. Both of these projects are expected to be delivered in the fourth quarter of 2007.

Several Successful Capital Market Transactions Provide Additional Liquidity

During 2005 Tanger raised approximately $381.3 million in debt and equity capital, proceeds of which were used to prepay certain mortgage debt, and an associated prepayment premium, as well as to fund the $282.5 million acquisition of the remaining two-thirds interest in the Charter Oak portfolio.

3

On September 2, 2005 Tanger completed the issuance of 3.0 million of its common shares to certain advisory clients of Cohen & Steers Capital Management, Inc. at a net price to the company of $27.09 per share, proceeds of which were used to temporarily pay down amounts outstanding on the company’s unsecured lines of credit.

On October 3, 2005 Tanger repaid in full its mortgage debt outstanding with John Hancock Mutual Life Insurance Company totaling approximately $77.4 million, with interest rates ranging from 7.875% to 7.98% and an original maturity date of April 1, 2009. As a result of the early repayment, Tanger recognized a non-recurring charge for the early extinguishment of the John Hancock mortgage debt of approximately $9.9 million. The non-recurring charge, which is included in interest expense, was recorded in the fourth quarter of 2005 and consisted of a prepayment premium of approximately $9.4 million and the write-off of deferred loan fees totaling approximately $0.5 million.

Following the early repayment of the John Hancock mortgage debt on October 3, 2005, Standard & Poor’s Ratings Service announced an upgrade of Tanger’s senior unsecured debt rating to an investment grade rating of BBB-, citing Tanger's progress in unencumbering a number of its properties resulting in over half of the company’s fully consolidated net operating income being generated by unencumbered properties. Moody’s Investors Services had previously announced on June 27, 2005 their upgrade of Tanger’s senior unsecured debt rating to an investment grade rating of Baa3.

On November 4, 2005, Tanger closed on $250 million of 6.15% Senior Unsecured Notes with net proceeds of approximately $247.2 million. Banc of America Securities LLC and Merrill Lynch & Co, acted as joint-book running managers. Goldman, Sachs & Co. and Wachovia Securities acted as co-managers. The ten year notes were issued by the company’s operating partnership, Tanger Properties Limited Partnership. The notes are rated BBB- by Standard & Poor’s and Baa3 by Moody’s Investor Service.

On November 14, 2005, Tanger closed on the sale of 2,200,000 7.5% Class C Preferred Shares with net proceeds of approximately $53.0 million. Morgan Stanley and Bear, Sterns & Co. Inc. acted as joint-book running managers for the offering. Legg Mason Wood Walker Incorporated and Stifel, Nicholas & Company Incorporated acted as co-managers.

In 2006 Tanger Expects Significant Growth in FFO Per Share

Based on current market conditions and the strength and stability of its core portfolio, Tanger currently believes its net income for 2006 will be between $0.74 and $0.78 per share and its FFO for 2006 will be between $2.18 and $2.22 per share. The company’s earnings estimates do not include the impact of any potential gains on the sale of land parcels, or the impact of any sales or acquisitions of properties. The following table provides the reconciliation of estimated diluted FFO per share to estimated diluted net income per share:

Low RangeHigh Range

Estimated diluted net income per common share$ 0.74 $ 0.78

Minority interest, gain/loss on the sale of real estate,

depreciation and amortization uniquely

significant to real estate including minority interest

share and our share of joint ventures 1.441.44

Estimated diluted FFO per share$ 2.18 $ 2.22

 4

Tanger currently believes it will earn 17% of its annual 2006 net income and 23% of its FFO per share in the first quarter, 22% of its net income and 24% of its FFO in the second quarter, 28% of its net income and 26% of its FFO in the third quarter and 33% of its net income and 27% of its FFO in the fourth quarter.

Year End Conference Call

Tanger will host a conference call to discuss its third quarter results for analysts, investors and other interested parties on Wednesday, March 1, 2006, at 10:00 A.M. eastern time. To access the conference call, listeners should dial 1-877-277-5113 and request to be connected to the Tanger Factory Outlet Centers Year End 2005 Financial Results call. Alternatively, the call will be web cast by CCBN and can be accessed at the “Tanger News” section of Tanger Factory Outlet Centers, Inc.'s web site at www.tangeroutlet.com.

A telephone replay of the call will be available from March 1, 2006 starting at 12:00 P.M. Eastern Time through 11:59 P.M., March 10, 2006, by dialing 1-800-642-1687 (conference ID # 5112172). Additionally, an online archive of the broadcast will also be available through March 10, 2006.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc. (NYSE: SKT), a fully integrated, self-administered and self-managed publicly traded REIT, presently owns 30 centers in 22 states coast to coast, totaling approximately 8.2 million square feet of gross leasable area. Tanger also owns a 50% interest in one center containing approximately 402,000 square feet and manages for a fee two centers totaling approximately 159,000 square feet. Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended December 31, 2005. For more information on Tanger Outlet Centers, visit our web site at www.tangeroutlet.com.

Estimates of future net income per share and FFO per share are by definition, and certain other matters discussed in this press release regarding our re-merchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, fund from operations, the development of new centers, the opening of ongoing expansions, coverage of the current dividend and the impact of sales of land parcels may be, forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those projected due to various factors including, but not limited to, the risks associated with general economic and local real estate conditions, the availability and cost of capital, our ability to lease our properties, our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and competition. For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2004 (and December 31, 2005, when available).

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TANGER FACTORY OUTLET CENTERS, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

	Three months ended						Year ended
	December 31,						December 31,
	2005			2004			2005			2004
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
REVENUES
Base rentals (a)	$	34,261		$	33,234		$	132,826		$	128,841
Percentage rentals		2,444			2,380			6,412			5,338
Expense reimbursements		15,481			14,513			56,303			52,153
Other income (b)		3,538			1,680			7,258			6,708
Total revenues		55,724			51,807			202,799			193,040
EXPENSES
Property operating		17,691			16,468			64,092			58,973
General and administrative		3,515			3,068			13,848			12,828
Depreciation and amortization		12,368			12,236			48,644			51,201
Total expenses		33,574			31,772			126,584			123,002
Operating income		22,150			20,035			76,215			70,038
Interest expense (including prepayment premium          and deferred loan cost write off of $9,866 in 2005)		18,600			8,433			42,927			35,117
Income before equity in earnings of unconsolidated joint ventures, minority interests, discontinued operations and loss on sale of real estate		3,550			11,602			33,288			34,921
Equity in earnings of unconsolidated joint ventures (c)		165			243			879			1,042
Minority interests
Consolidated joint venture		(3,832	)		(6,734	)		(24,043	)		(27,144	)
Operating partnership		109			(930	)		(1,721	)		(1,611	)
Income (loss) from continuing operations		(8	)		4,181			8,403			7,208
Discontinued operations, net of minority interest (d)		133			123			529			(162	)
Income before loss on sale of real estate		125			4,304			8,932			7,046
Loss on sale of real estate, net of minority interest		---			---			(3,843	)		---
Net income		125			4,304			5,089			7,046
Less applicable preferred share dividends		(538	)		---			(538	)		---
Net income (loss) available to common shareholders	$	(413	)	$	4,304		$	4,551		$	7,046
Basic earnings per common share:
Income (loss) from continuing operations	$	(.02	)	$	.15		$	.14		$	.27
Net income (loss)	$	(.01	)	$	.16		$	.16		$	.26
Diluted earnings per common share:
Income (loss) from continuing operations	$	(.02	)	$	.15		$	.14		$	.26
Net income (loss)	$	(.01	)	$	.16		$	.16		$	.26
Summary of discontinued operations (d)
Operating income from discontinued operations	$	160		$	158		$	643		$	1,267
Loss on sale of real estate		---			---			---			(1,460	)
Income (loss) from discontinued operations		160			158			643			(193	)
Minority interest in discontinued operations		(27	)		(35	)		(114	)		31
Discontinued operations, net of minority interest	$	133		$	123		$	529		$	(162	)
(a) Includes straight-line rent and market rent adjustments of $550 and $507 for the three months ended and $2,489 and $1,444 for the years ended December 31, 2005 and 2004, respectively.
(b) Includes gains on sale of outparcels of land of $1,426 and $119 for the three months ended and $1,554 and $1,510 for the years ended December 31, 2005 and 2004, respectively.
(c) Includes Myrtle Beach, South Carolina Hwy 17 property which is operated by us through a 50% ownership joint venture.
(d) In accordance with SFAS No. 144”Accounting for the Impairment or Disposal of Long Lived Assets,” the results of operations for properties disposed of during the year or classified as held for sale as of the end of the year in which we have no significant continuing involvement have been reported above as discontinued operations for the periods presented.

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TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	December 31,			December 31,
	2005			2004
	(Unaudited)			(Unaudited)
ASSETS:
Rental property
Land	$	120,715		$	113,830
Buildings, improvements and fixtures		1,004,545			963,563
Construction in progress		27,606			---
		1,152,866			1,077,393
Accumulated depreciation		(253,765	)		(224,622	)
Rental property, net		899,101			852,771
Cash and cash equivalents		2,930			4,103
Assets held for sale (1)		2,637			---
Investments in unconsolidated joint ventures		13,020			6,700
Deferred charges, net		64,555			58,851
Other assets		18,362			13,953
Total assets	$	1,000,605		$	936,378
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY:
Liabilities
Long-term debt
Senior, unsecured notes (net of discount of $901 and $0, respectively)	$	349,099		$	100,000
Mortgages payable (including premium of $5,771 and $9,346, respectively)		201,233			308,342
Unsecured note		53,500			53,500
Unsecured lines of credit		59,775			26,165
Total long-term debt		663,607			488,007
Construction trade payables		13,464			11,918
Accounts payable and accrued expenses		23,954			17,026
Total liabilities		701,025			516,951
Commitments
Minority interests:
Consolidated joint venture		---			222,673
Operating partnership		49,366			35,621
Total minority interests		49,366			258,294
Shareholders’ equity
Preferred shares, 7.5% Class C, liquidation preference $25 per share, 8,000,000 authorized, 2,200,000 shares issued and outstanding at December 31, 2005		55,000			---
Common shares, $.01 par value, 50,000,000 authorized, 30,748,716 and 27,443,016 shares issued and outstanding at December 31, 2005 and December 31, 2004		307			274
Paid in capital		338,688			274,340
Distributions in excess of earnings		(140,738	)		(109,506	)
Deferred compensation		(5,501	)		(3,975	)
Accumulated other comprehensive income		2,458			---
Total shareholders’ equity		250,214			161,133
Total liabilities, minority interests and shareholders’ equity	$	1,000,605		$	936,378

(1)   Represents the Pigeon Forge, Tennessee property which was classified as “Assets held for sale” under the guidance of SFAS 144 as of December 31, 2005. This property was subsequently sold in January 2006 for net proceeds of $6.0 million with a gain on sale of approximately $3.6 million.

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TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(in thousands, except per share, state and center information)

	Three months ended						Year ended
	December 31,						December 31,
		2005			2004			2005		2004
FUNDS FROM OPERATIONS (a)
Net income (loss)	$	125		$	4,304		$	5,089		$	7,046
Adjusted for:
Minority interest in operating partnership		(109	)		930			1, 721			1,611
Minority interest adjustment - consolidated joint venture		234			(198	)		(315	)		(180	)
Minority interest, depreciation and amortization
attributable to discontinued operations		89			84			358			768
Depreciation and amortization uniquely significant to
real estate - consolidated		12,302			12,183			48,395			50,979
Depreciation and amortization uniquely significant to
real estate - unconsolidated joint ventures		379			379			1,493			1,334
Loss on sale of real estate		---			---			3,843			1,460
Funds from operations (FFO)		13,020			17,682			60,584			63,018
Preferred share dividends		(538	)		---			(538	)		---
Funds from operations available to common shareholders	$	12,482		$	17,682		$	60,046		$	63,018
Funds from operations available to common shareholders
per share diluted	$	.34		$	.53		$	1.73		$	1.89
WEIGHTED AVERAGE SHARES
Basic weighted average common shares		30,452			27,266			28,380			27,044
Effect of outstanding share and unit options		195			198			193			187
Effect of unvested restricted share awards		106			56			73			30
Diluted weighted average common shares (for earnings per share computations)		30,753			27,520			28,646			27,261
Convertible operating partnership units (b)		6,067			6,067			6,067			6,067
Diluted weighted average common shares (for funds from operations per share computations)		36,820			33,587			34,713			33,328
OTHER INFORMATION
Gross leasable area open at end of period -
Wholly owned		8,261			5,066			8,261			5,066
Partially owned - consolidated (c)		---			3,271			---			3,271
Partially owned - unconsolidated (d)		402			402			402			402
Managed		64			105			64			105
Outlet centers in operation -
Wholly owned		31			23			31			23
Partially owned - consolidated (c)		---			9			---			9
Partially owned - unconsolidated		1			1			1			1
Managed		1			3			1			3
States operated in at end of period (c)		22			23			22			23
Occupancy percentage at end of period (c) (d)		97	%		97	%		97	%		97	%

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TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES

FOOTNOTES TO SUPPLEMENTAL INFORMATION

(a) FFO is a non-GAAP financial measure. The most directly comparable GAAP measure is net income (loss), to which it is reconciled. We believe that for a clear understanding of our operating results, FFO should be considered along with net income as presented elsewhere in this report. FFO is presented because it is a widely accepted financial indicator used by certain investors and analysts to analyze and compare one equity REIT with another on the basis of operating performance. FFO is generally defined as net income (loss), computed in accordance with generally accepted accounting principles, before extraordinary items and gains (losses) on sale or disposal of depreciable operating properties, plus depreciation and amortization uniquely significant to real estate and after adjustments for unconsolidated partnerships and joint ventures. We caution that the calculation of FFO may vary from entity to entity and as such the presentation of FFO by us may not be comparable to other similarly titled measures of other reporting companies. FFO does not represent net income or cash flow from operations as defined by accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as an indication of operating performance or to cash flows from operations as a measure of liquidity. FFO is not necessarily indicative of cash flows available to fund dividends to shareholders and other cash needs.

(b) The convertible operating partnership units (minority interest in operating partnership) are not dilutive on earnings per share computed in accordance with generally accepted accounting principles.

(c) Includes the Charter Oak portfolio which we originally acquired through a joint venture in 2003. At that time we had a 33% ownership interest in the joint venture. In November 2005, we acquired the remaining 66% interest in the joint venture, thus making the portfolio wholly-owned from that date forward. However, these properties have been consolidated for financial reporting under the accounting guidance of FIN 46R since the initial formation of the joint venture in December 2003.

(d) Excludes Myrtle Beach, South Carolina Hwy 17 property which is operated by us through a 50% ownership joint venture and one center for which we only have management responsibilities.

9

EX-99.2

Tanger Factory Outlet Centers, Inc.

Supplemental Operating and Financial Data

December 31, 2005

1

Notice

For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2004.

This Supplemental Operating and Financial Data is not an offer to sell or a solicitation to buy any securities of the Company. Any offers to sell or solicitations to buy any securities of the Company shall be made only by means of a prospectus.

2

Table of Contents

Section

Portfolio Data:

Geographic Diversification	4
Property Summary - Occupancy at End of Each Period Shown (1)	5
Portfolio Occupancy at the End of Each Period (1)	6
Major Tenants (1)	7
Lease Expirations as of December 31, 2005	8
Leasing Activity (1)	9

Financial Data:

Consolidated Balance Sheets	10
Consolidated Statements of Operations	11
FFO and FAD Analysis	12
Unconsolidated Joint Venture Information	13
Debt Outstanding Summary	14
Senior Unsecured Notes Financial Covenants	14
Future Scheduled Principal Payments	15

3

Geographic Diversification

As of December 31, 2005
State	# of Centers	GLA	% of GLA
South Carolina (1)	2	820,511	10%
Georgia	3	820,274	10%
New York	1	729,315	9%
Alabama	2	636,668	8%
Texas	2	620,000	8%
Delaware	1	568,873	7%
Tennessee	2	513,732	6%
Michigan	2	436,751	5%
Utah	1	300,602	4%
Connecticut	1	291,051	4%
Missouri	1	277,883	3%
Iowa	1	277,230	3%
Oregon	1	270,280	3%
Illinois	1	256,514	3%
Pennsylvania	1	255,152	3%
Louisiana	1	243,499	3%
New Hampshire	1	227,998	3%
Florida	1	198,924	2%
North Carolina (2)	2	187,510	2%
Minnesota	1	134,480	2%
California	1	108,950	1%
Maine	2	84,313	1%
Total (1) (2)	31	8,260,510	100%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement.

(2)   Excludes one 64,288 square foot center for which we only have management responsibilities.

4

Property Summary - Occupancy at End of Each Period Shown (1)

Location	Total GLA 12/31/05	% Occupied 12/31/05	% Occupied 9/30/05	% Occupied 6/30/05	% Occupied 3/31/05	% Occupied 12/31/04
Riverhead, NY	729,315	99%	100%	99%	99%	99%
Rehoboth, DE	568,873	99%	99%	100%	99%	99%
Foley, AL	557,093	97%	98%	99%	95%	99%
San Marcos, TX	442,510	100%	99%	99%	98%	100%
Myrtle Beach, SC	427,417	93%	90%	93%	92%	92%
Sevierville, TN	419,038	100%	100%	100%	99%	100%
Hilton Head, SC	393,094	88%	87%	90%	89%	92%
Commerce II, GA	340,656	97%	99%	99%	96%	99%
Howell, MI	324,631	99%	98%	96%	96%	100%
Park City, UT	300,602	100%	99%	99%	98%	97%
Locust Grove, GA	293,868	100%	99%	98%	97%	100%
Westbrook, CT	291,051	94%	92%	92%	92%	93%
Branson, MO	277,883	100%	100%	100%	100%	100%
Williamsburg, IA	277,230	100%	99%	96%	96%	100%
Lincoln City, OR	270,280	94%	94%	92%	91%	96%
Tuscola, IL	256,514	75%	76%	76%	75%	78%
Lancaster, PA	255,152	100%	100%	99%	99%	100%
Gonzales, LA	243,499	100%	98%	100%	100%	100%
Tilton, NH	227,998	100%	96%	96%	91%	99%
Fort Myers, FL	198,924	95%	91%	91%	92%	91%
Commerce I, GA	185,750	90%	90%	86%	76%	82%
Terrell, TX	177,490	100%	99%	99%	100%	100%
North Branch, MN	134,480	100%	100%	100%	98%	100%
West Branch, MI	112,120	100%	100%	97%	98%	98%
Barstow, CA	108,950	95%	93%	98%	100%	100%
Blowing Rock, NC	105,332	100%	100%	100%	100%	100%
Pigeon Forge, TN	94,694	99%	95%	96%	93%	96%
Nags Head, NC	82,178	100%	98%	100%	100%	100%
Boaz, AL	79,575	95%	95%	95%	95%	95%
Kittery I, ME	59,694	100%	100%	100%	100%	100%
Kittery II, ME	24,619	100%	100%	100%	100%	100%
Seymour, IN	n/a	n/a	n/a	n/a	n/a	89%
Total	8,260,510	97%	96%	97%	95%	97%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and one 64,288 square foot center for which we only have management responsibilities.

5

Portfolio Occupancy at the End of Each Period (1)

12/05     09/05     06/05     03/05     12/04     09/04     06/04     03/04     12/03
97%        96%       97%       95%        97%       96%       95%      94%       96%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and one 64,288 square foot center for which we only have management responsibilities.

6

Major Tenants (1)

Ten Largest Tenants As of December 31, 2005
Tenant	# of Stores	GLA	% of Total GLA
The Gap, Inc.	57	569,439	6.9%
Phillips-Van Heusen	95	455,051	5.5%
Liz Claiborne	42	339,629	4.1%
VF Factory Outlet	34	272,584	3.3%
Reebok International	30	230,502	2.8%
Carter’s	47	228,193	2.8%
Dress Barn, Inc.	30	216,650	2.6%
Retail Brand Alliance, Inc.	35	209,985	2.5%
Polo Ralph Lauren	23	188,628	2.3%
Brown Group Retail, Inc.	44	181,443	2.2%
Total of All Listed Above	437	2,892,104	35.0%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and one 64,288 square foot center for which we only have management responsibilities.

7

Lease Expirations as of December 31, 2005

Percentage of Total Gross Leasable Area (1)

[

2006        2007         2008       2009         2010         2011         2012         2013         2014        2015         2016+
15%        20%           17%       17% 16%            9%            2%            1%            1%           1% 1%

Percentage of Total Annualized Base Rent (1)

[

2006    2007     2008   2009     2010     2011     2012     2013     2014       ; 2015     2016+
14%     19%     17%     17%     18%      8%         2%       1%    1%      2%       1%    

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and one 64,288 square foot center for which we only have management responsibilities.

8

Leasing Activity (1)

		03/31/05			06/30/05			09/30/05			12/31/05			Year to Date			Prior Year to Date
Re-tenanted Space:
Number of leases		42			32			23			6			103			109
Gross leasable area		204,830			117,356			73,042			24,022			419,250			427,412
New base rent per square foot	$	17.25		$	16.41		$	21.52		$	16.95		$	17.74		$	17.27
Prior base rent per square foot	$	16.60		$	15.72		$	18.00		$	15.93		$	16.56		$	16.43
Percent increase in rent per square foot		3.9	%		4.4	%		19.5	%		6.4	%		7.1	%		5.1	%
Renewed Space:
Number of leases		169			74			48			66			357			362
Gross leasable area		739,494			334,357			228,647			222,528			1,525,026			1,570,565
New base rent per square foot	$	17.35		$	16.20		$	14.98		$	14.81		$	16.37		$	14.40
Prior base rent per square foot	$	15.97		$	15.25		$	14.82		$	14.61		$	15.44		$	13.63
Percent increase in rent per square foot		8.6	%		6.2	%		1.1	%		1.3	%		6.0	%		5.6	%
Total Re-tenanted and Renewed Space:
Number of leases		211			106			71			72			460			471
Gross leasable area		944,324			451,713			301,689			246,550			1,944,276			1,997,977
New base rent per square foot	$	17.33		$	16.25		$	16.56		$	15.01		$	16.66		$	15.01
Prior base rent per square foot	$	16.10		$	15.37		$	15.59		$	14.74		$	15.68		$	14.23
Percent increase in rent per square foot		7.6	%		5.7	%		6.2	%		1.9	%		6.3	%		5.5	%

		03/31/05			06/30/05			09/30/05			12/31/05			Year to Date			Prior Year to Date
Stores Opening:
Number of stores		13			32			30			18			93			126
Gross leasable area		50,994			105,009			133,745			61,185			350,933			436,574
Base rent per square foot	$	15.05		$	18.24		$	17.98		$	22.34		$	18.39		$	17.99
Stores Closing:
Number of stores		32			13			27			7			79			115
Gross leasable area		103,163			57,780			80,182			15,188			256,313			402,320
Base rent per square foot	$	18.02		$	13.35		$	18.88		$	23.03		$	17.53		$	16.05
Percent increase in rent per square foot		(16.5	%)		36.7	%		(4.8	%)		(3.0	%)		4.9	%		12.1	%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and one 64,288 square foot center for which we only have management responsibilities.

9

Consolidated Balance Sheets (dollars in thousands)

		12/31/05			9/30/05			6/30/05			3/31/05			12/31/04
Assets
Rental property
Land	$	120,715		$	113,284		$	113,284		$	113,355		$	113,830
Buildings		1,004,545			960,105			956,440			954,758			963,563
Construction in progress		27,606			8,797			6,044			1,173			--
Total rental property		1,152,866			1,082,186			1,075,768			1,069,286			1,077,393
Accumulated depreciation		(253,765	)		(247,179	)		(237,688	)		(228,252	)		(224,622	)
Total rental property - net		899,101			835,007			838,080			841,034			852,771
Cash & cash equivalents		2,930			6,219			3,543			6,531			4,103
Short-term investments		--			20,000			--			--			--
Assets held for sale		2,637			--			--			--			--
Investments in unconsolidated joint ventures		13,020			6,913			6,764			6,966			6,700
Deferred charges - net		64,555			52,873			54,818			55,611			58,851
Other assets		18,362			19,982			15,021			14,570			13,953
Total assets	$	1,000,605		$	940,994		$	918,226		$	924,712		$	936,378
Liabilities, minority interests & shareholders’ equity
Liabilities
Debt
Senior, unsecured notes, net of discount	$	349,099		$	100,000		$	100,000		$	100,000		$	100,000
Mortgages payable, including premium		201,233			281,069			290,197			305,983			308,342
Unsecured note		53,500			53,500			53,500			53,500			53,500
Unsecured lines of credit		59,775			--			45,330			33,455			26,165
Total debt		663,607			434,569			489,027			492,938			488,007
Construction trade payables		13,464			8,294			9,231			9,781			11,918
Accounts payable & accruals		23,954			14,849			16,984			25,753			17,026
Total liabilities		701,025			457,712			515,242			528,472			516,951
Minority interests
Consolidated joint venture		--			227,234			225,103			223,895			222,673
Operating partnership		49,366			42,220			31,963			31,045			35,621
Total minority interests		49,366			269,454			257,066			254,940			258,294
Shareholders’ equity
Preferred shares		55,000			--			--			--			--
Common shares		307			307			277			276			274
Paid in capital		338,688			349,287			278,811			277,857			274,340
Distributions in excess of net income		(140,738	)		(130,955	)		(126,436	)		(129,917	)		(109,506	)
Deferred compensation		(5,501	)		(5,930	)		(6,372	)		(6,844	)		(3,975	)
Accum. other compreh. income (loss)		2,458			1,119			(362	)		(72	)		--
Total shareholders’ equity		250,214			213,828			145,918			141,300			161,133
Total liabilities, minority interests & shareholders’ equity	$	1,000,605		$	940,994		$	918,226		$	924,712		$	936,378

10

Consolidated Statements of Operations (dollars and shares in thousands)

	Three Months Ended															YTD
	12/05			09/05			06/05			03/05			12/04			12/05			12/04
Revenues
Base rentals	$	34,261		$	33,718		$	33,243		$	31,604		$	33,234		$	132,826		$	128,841
Percentage rentals		2,444			1,815			1,267			886			2,380			6,412			5,338
Expense reimbursements		15,481			14,149			12,496			14,177			14,513			56,303			52,153
Other income		3,538			1,582			1,197			941			1,680			7,258			6,708
Total revenues		55,724			51,264			48,203			47,608			51,807			202,799			193,040
Expenses
Property operating		17,691			15,897			14,448			16,056			16,468			64,092			58,973
General & administrative		3,515			3,578			3,711			3,044			3,068			13,848			12,828
Depreciation & amortization		12,368			12,046			11,360			12,870			12,236			48,644			51,201
Total expenses		33,574			31,521			29,519			31,970			31,772			126,584			123,002
Operating income		22,150			19,743			18,684			15,638			20,035			76,215			70,038
Interest expense (1)		18,600			7,932			8,167			8,228			8,433			42,927			35,117
Income before equity in earnings    of unconsolidated joint ventures,    minority interests, discontinued    operations and loss on sale of real    estate		3,550			11,811			10,517			7,410			11,602			33,288			34,921
Equity in earnings of unconsolidated    joint ventures		165			255			268			191			243			879			1,042
Minority interests:
Consolidated joint venture		(3,832	)		(6,860	)		(6,727	)		(6,624	)		(6,734	)		(24,043	)		(27,144	)
Operating partnership		109			(917	)		(737	)		(176	)		(930	)		(1,721	)		(1,611	)
Income (loss) from continuing operations		(8	)		4,289			3,321			801			4,181			8,403			7,208
Discontinued operations (2)		133			124			159			113			123			529			(162	)
Income before loss on sale of real      estate		125			4,413			3,480			914			4,304			8,932			7,046
Loss on sale of real estate		--			--			--			(3,843	)		--			(3,843	)		--
Net income (loss)		125			4,413			3,480			(2,929	)		4,304			5,089			7,046
Less applicable preferred share dividends		(538	)		--			--			--			--			(538	)		--
Net income (loss) available to common shareholders	$	(413	)	$	4,413		$	3,480		$	(2,929	)	$	4,304		$	4,551		$	7,046
Basic earnings per common share:
Income (loss) from continuing operations	$	(.02	)	$	.15		$	.12		$	(.11	)	$	.15		$	.14		$	.27
Net income (loss)	$	(.01	)	$	.16		$	.13		$	(.11	)	$	.16		$	.16		$	.26
Diluted earnings per common share:
Income (loss) from continuing operations	$	(.02	)	$	.15		$	.12		$	(.11	)	$	.15		$	.14		$	.26
Net income (loss)	$	(.01	)	$	.15		$	.13		$	(.11	)	$	.16		$	.16		$	.26
Weighted average common shares:
Basic		30,452			28,374			27,357			27,304			27,266			28,380			27,044
Diluted		30,753			28,680			27,576			27,516			27,520			28,646			27,261

(1)   Including prepayment premium and deferred loan cost write off of $9.9 million in 2005.

(2)   In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”, the results of operations for properties sold for which we have no significant continuing involvement, including any gain or loss on such sales, and properties classified as assets held for sale, have been reported above as discontinued operations for both the current and prior periods presented.

11

FFO and FAD Analysis (dollars and shares in thousands)

	Three Months Ended															YTD
		12/05			09/05			06/05			03/05			12/04			12/05			12/04
Funds from operations:
Net income	$	125		$	4,413		$	3,480		$	(2,929	)	$	4,304		$	5,089		$	7,046
Adjusted for -
Minority interest in operating       partnership		(109	)		917			737			176			930			1,721			1,611
Minority interest adjustment       consolidated joint venture		234			(441	)		(277	)		169			(198	)		(315	)		(180	)
Minority interest, depreciation       and amortization in       discontinued operations		89			87			95			87			84			358			768
Depreciation and amortization       uniquely significant to real estate -       wholly owned		12,302			11,980			11,298			12,815			12,183			48,395			50,979
Depreciation and amortization      uniquely significant to real estate -      joint ventures		379			375			370			369			379			1,493			1,334
Loss on sale of real estate		--			--			--			3,843			--			3,843			1,460
Preferred share dividend		(538	)		--			--						--			(538	)		--
Funds from operations	$	12,482		$	17,331		$	15,703		$	14,530		$	17,682		$	60,046		$	63,018
Funds from operations per share	$	.34		$	.50		$	.47		$	.43		$	.53		$	1.73		$	1.89
Funds available for distribution:
Funds from operations	$	12,482		$	17,331		$	15,703		$	14,530		$	17,682		$	60,046		$	63,018
Adjusted For -
Corporate depreciation        excluded above		66			66			62			55			53			249			222
Amortization of finance costs		276			323			341			355			350			1,295			1,465
Early extinguishment of debt		9,866			--			--			--			--			9,866			--
Amortization of share compensation		429			426			468			242			237			1,565			1,476
Straight line rent adjustment		(393	)		(706	)		(539	)		(112	)		(90	)		(1,750	)		(389	)
Below market rent adjustment		(158	)		76			(613	)		(46	)		(418	)		(741	)		(1,065	)
Market rate interest adjustment		(609	)		(652	)		(643	)		(629	)		(631	)		(2,533	)		(2,506	)
2nd generation tenant allowances		(2,130	)		(1,290	)		(2,346	)		(4,462	)		(2,839	)		(10,228	)		(7,368	)
Capital improvements		(1,572	)		(1,841	)		(2,231	)		(952	)		(2,080	)		(6,596	)		(7,045	)
Consolidated joint venture minority interest share of adjustments		(234	)		441			277			(169	)		198			315			180
Funds available for distribution	$	18,023		$	14,174		$	10,479		$	8,812		$	12,462		$	51,488		$	47,988
Funds available for distribution    per share	$	.49		$	.41		$	.31		$	.26		$	.37		$	1.48		$	1.44
Dividends paid per share	$	.3225		$	.3225		$	.3225		$	.3125		$	.3125		$	1.28		$	1.245
FFO payout ratio		95	%		65	%		69	%		73	%		59	%		74	%		66	%
FAD payout ratio		66	%		79	%		104	%		120	%		84	%		86	%		86	%
Diluted weighted average common shs.		36,820			34,747			33,643			33,583			33,587			34,713			33,328

12

Unconsolidated Joint Venture Information - All

Summary Balance Sheets (dollars in thousands)

		12/31/05		09/30/05		06/30/05		3/31/05		12/31/04		Tanger’s Share as of 12/31/05 (1	)
Assets
Investment properties at cost - net	$	64,915	$	65,489	$	67,446	$	67,399	$	69,865	$	28,108
Construction in progress		15,734		96		--		--		--		7,867
Cash and cash equivalents		6,355		4,171		4,253		4,319		2,449		2,835
Deferred charges - net		1,548		1,340		1,433		1,305		1,973		774
Other assets		6,690		6,073		4,245		3,869		2,826		2,525
Total assets	$	95,242	$	77,169	$	77,377	$	76,892	$	77,113	$	42,109
Liabilities & Owners’ Equity
Mortgage payable	$	61,081	$	61,066	$	61,024	$	60,254	$	59,708	$	26,327
Member loans payable		--		550		--		--		--		--
Construction trade payables		6,588		215		477		426		578		3,294
Accounts payable & other liabilities		1,177		1,239		1,956		828		702		498
Total liabilities		68,846		63,070		63,457		61,508		60,988		30,119
Owners’ equity		26,396		14,099		13,920		15,384		16,125		11,990
Total liabilities & owners’ equity	$	95,242	$	77,169	$	77,377	$	76,892	$	77,113	$	42,109

(1) Tanger’s portion of investment properties at cost - net, includes $8.7 million associated with a development property that generated net income considered incidental to its intended future operation as an outlet center. As such, the net income generated from this property is recorded as a reduction to the carrying value of the property and is therefore not included in the summary statement of operations below.

Summary Statements of Operations (dollars in thousands)

	Three Months Ended										YTD
		12/05		09/05		06/05		03/05		12/04		12/05		12/04
Revenues	$	2,730	$	2,735	$	2,933	$	2,511	$	2,557	$	10,909	$	9,821
Expenses
Property operating		1,050		888		1,067		974		900		3,979		3,539
General & administrative		5		4		15		--		10		24		31
Depreciation & amortization		789		777		769		767		765		3,102		2,742
Total expenses		1,844		1,669		1,851		1,741		1,675		7,105		6,312
Operating income		866		1,066		1,082		770		882		3,804		3,509
Interest expense		586		584		574		417		401		2,161		1,532
Net income	$	300	$	482	$	508	$	353	$	481	$	1,643	$	1,977
Tanger’s share of:
Total revenues less property      operating and general &      administrative expenses (“NOI”)	$	837	$	922	$	925	$	769	$	824	$	3,453	$	3,126
Net income	$	165	$	255	$	268	$	191	$	243	$	879	$	1,042
Depreciation (real estate related)	$	379	$	375	$	370	$	369	$	379	$	1,493	$	1,334

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Debt Outstanding Summary (dollars in thousands)

As of December 31, 2005
		Principal Balance		Interest Rate		Maturity Date
Mortgage debt
Blowing Rock, NC	$	9,201		8.860	%	09/01/10
Nags Head, NC		6,244		8.860	%	09/01/10
COROC Holdings, LLC, including centers      located in Rehoboth Beach, DE; Foley, AL;      Myrtle Beach (Hwy 501), SC; Hilton Head,      SC; Park City, UT; Westbrook, CT;      Lincoln City, OR; Tuscola, IL; Tilton, NH		180,017		6.590	%	07/10/08
Net debt premium COROC Holdings, LLC (1)		5,771
Total mortgage debt		201,233
Corporate debt
Unsecured term loan		53,500		Libor + 0.85	%	03/26/08
Unsecured credit facilities		59,775		Libor + 0.85	%	06/30/08
2008 Senior unsecured notes		100,000		9.125	%	02/15/08
2015 Senior unsecured notes		250,000		6.15	%	11/15/15
Net discount senior unsecured notes		(901	)
Total corporate debt		462,374
Total debt	$	663,607

Senior Unsecured Notes Financial Covenants (2)

As of December 31, 2005
	Required		Actual		Compliance
Total Consolidated Debt to Adjusted Total Assets	60	%	54	%	Yes
Total Secured Debt to Adjusted Total Assets	40	%	16	%	Yes
Total Unencumbered Assets to Unsecured Debt	135	%	138	%	Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge	2.00		3.94		Yes

(1)   Represents a premium on mortgage debt with an imputed interest rate of 4.97% assumed in the Charter Oak acquisition.

(2)   For a complete listing of all Debt Covenants related to the Company’s Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company’s filings with the Securities and Exchange Commission.

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Future Scheduled Principal Payments (dollars in thousands)

As of December 31, 2005
Year	Scheduled Amortization Payments	Balloon Payments	Total Scheduled Payments
2006	$3,849	--	$3,849
2007	4,121	--	4,121
2008	2,688	$383,626	386,314
2009	394	--	394
2010	181	13,878	14,059
2011	--	--	--
2012	--	--	--
2013	--	--	--
2014	--	--	--
2015 & thereafter		250,000	250,000
	$11,233	$647,504	$658,737
Net Premium on Debt			4,870
			$663,607

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Investor Information

Tanger Outlet Centers welcomes any questions or comments from shareholders, analysts, investment managers, media and prospective investors. Please address all inquiries to our Investor Relations Department.

Tanger Factory Outlet Centers, Inc.

Investor Relations

Phone: (336) 292-3010 ext 6825

Fax: (336) 297-0931

e-mail: tangermail@tangeroutlet.com

Mail:   Tanger Factory Outlet Centers, Inc.

 3200 Northline Avenue

 Suite 360

 Greensboro, NC 27408

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